Welcome to The Real Money Show. My name is Jeremy Wiseman. I'm joined by Jerry
Correa, and we're going to be discussing the gold and silver market, maybe not
completely weekly, but we hope to be here often and talk about some politics as
well along the way. But before we get started, it's been a great year in the
market, Jerry. So far, silver is up 80 % in U .S.
dollars. Gold is up 60 % in U .S. dollars. And let's start right there because we
don't see it necessarily just because inflation is running and just because dollars
are devaluing because that's sort of the typical narrative of precious metals. We
like to go a little bit deeper than that. Let's discuss that off the bat. So our
listeners understand and viewers understand sort of where we come from with regard to
Guildhall wealth. Well, this is the whole point of the real money show, Jeremy, is
to educate and empower Canadians, investors around the world to understand what's
going on, not just overseas and not just geopolitically with the four fundamentals
that we often talk about, which would be currency debasement through inflating the
currencies, supply and demand, and geopolitical concerns. Usually that has been the
case. Things have shifted quite rapidly over the last few years to now include other
fundamentals. But the major fundamentals are going to remain because the fact is all
major central banks are not just acquiring precious metals, gold especially,
ad nauseum, just nonstop. But they also are using the same equation that they've
always used, which is just money printing. And that's what's happening. There's going
to be a lot of rounds of money printing coming up. The dollar is devaluing. Every
single major currency, Jeremy, is losing versus ounces. So our message has always
been cleared. It's time to de -dollarize. Nations are de -dollarizing. The BRICS
nations have been showing us that this is the way to do it. They're rebalancing the
playing field. They're including gold in the conversation. And that is the major
driver. The new space race, as you mentioned on the Real Money Show last week, is
a race towards physical assets, physical resources. Critical minerals are now on the
table. And this is a major shift as to why the demand in precious metals are going
up and why the prices as well are going up. Price is one thing, though, Jeremy.
Yeah. Right? It's not the value of what it offers. Price is also shifting overseas.
A lot to talk about. And this is why we're so super excited to be on with Rebel
News. Yeah, so you're talking about where we're going to derive the price from. It
looks as though that is moving eastward. But when we think about fundamentals, we're
looking at,
mentioned is this kind of new version of a space race as a new fundamental, which
is the financializing of everything is changing. It's more to, as what Jim Rogers
used to talk about in his book, Hot Commodities, of eventually you've got to get
back to making stuff. Exactly. And right now, there certainly seems to be a grab
for making stuff, and you need sources. So you see around the world there's a chase
on for rare earths, but it's not just rare earths. It's also things like
look at the prices having moved so much this year, is it just the demand side
that's driving silver in particular at this point? And how much further could we see
it rise from here? You know, it's both gold and silver at the forefront of
everyone's, you know, portfolios being shifted. We're seeing major banks now throwing
out the old 60 -40 split of the portfolios to include now 20 % into gold.
Countries are now holding silver now for bank reserves. India has set up major
exchanges. We had the Shanghai Gold Exchange, the Indian Bullion Exchange. These are,
in our opinion, going to rival, and are rivaling the old guard of where we used to
get the gold and silver prices, London and New York, two places that they don't
offer any physical. They don't mine it. They just print it. And actually,
they are kings of the contracts, which is just the paper. And it's so easy to do.
You could flood the market with fictitious ounces. You know, one contract of silver
is 5 ,000 ounces of silver that does not exist. You can create the supply and you
could sell the contract, manipulate that market. But Now that silver is being deemed
and has been designated as a critical mineral, I think it's going to put pressure
on those banks. I don't think you'll be allowed to do that type of shenanigans
anymore in the silver space using the paper manipulative, you know, the control that
they once had. Yeah, it's fleeing to the east. I'm glad you brought that up because
one of the things that we really monitor at Guildhall is the revaluing of gold and
over. It's not an event. It's a process. And part of the reason we believe that
the prices are rising so much is not so much because of just inflation,
dollar devaluation or the race for new assets and commodities to go into things
structuring, you know, AI, all of and all new technologies going forth. And we'll
talk a little bit about nuclear in a moment. But what there also is to this is a
much bigger picture, which is in 71, when they lifted the gold standard,
at that point, we believe there was a sci -op against the people to not own gold
and not own silver. That's where you come up with the gold's a relic.
It doesn't pay a dividend. Just the tradition. The tradition. What are you, a
conspiracy nut? But if you have to own it, here's an investment version of it where
you don't actually own it because you don't really want to have to take care of
it. What are you going to do, put it in your backyard? So they come up with these
reasons, right? But the point is that they don't want you to own it because if you
own it, then you are immune to inflation. And they understand that.
That's why they misquote inflation at 2 % when it's really at 6%. And the fact that
we should even accept 2 % is ridiculous. that's 20 per that's
prevent people. We're going deep here. We're already putting on our tent foil hats.
But this is why people, this is why these entities didn't want you in those
markets. They wanted you in the financial markets where they control you. And look
at where the prices for the precious metals have been controlled for the better part
of 50 years, which is London and New York. And since it's not just Asia that's
moving it and the bricks nations that are moving it. But now that you're calling
silver a critical metal, it means you can't have these shenanigans in the markets.
And people realize, wait a second, there's a deficit, it's critical. We need to take
delivery of it. It's rendering the paper game anachronistic. It's no longer a game
you can play. And so what we're seeing and what we believe at Guildhall is we're
seeing a revaluing of the metal after it's been managed for over 50 years.
Absolutely. So this is not a one -off. Silver moving up 70 % in a single year is
not a one -off. This is a beginning. And I think that right now, as you look,
talk to us a little bit about where we are seeing silver at all -time highs. Today,
I think we hit 54, we're back into the 53 range on silver. We'll talk about gold
as well, but on silver, we are at all -time highs, 50 -year highs in the metal.
What do you think the market's going through psychologically at this point? Well,
there's a few things at play. Psychologically, it's obviously triggering the Western
investors. We are seeing the demand, regardless of price coming in from the East.
The exchanges actually have prices higher in the east. So we have a vacuuming
effect, which is the arbitrage. If you can buy it cheap in North America, export it
to Asia at a higher price, well, you're in business, right? And they're not going
to let it go, though, either. And this is what we're seeing just before that the U
.S.
designated silver to become a critical mineral. It was China the week before that
revised the way that they export silver. They actually made it very difficult for
the exports. So we're seeing a hoarding now, a stockpiling. So it's pushing countries
to do a 180. You know, just a year ago, we saw, you know, commercials about the
green energy and the green project. We've got to stop, you know, stop with the
pollution, Canada, and we'll shut down, we'll shut down mining. But a complete 180,
now that there is a race for critical minerals, we're now seeing commercials here in
Canada on mainstream that are saying, well, Canada has to drill and protect our
critical minerals. I hope it's not a complete one 80. We intend to. We intend to.
We're going to. We're going to. What I've noticed is actually a lot of Canadians in
the last year have also realized or taken for granted how rich they really should
be. Exactly. Right. I remember seeing this. So true. this graphic.
we were second or third. And I thought, oh, whoa, wait a second. Saudi Arabia
doesn't pay income taxes. We have the second, third, largest amount of oil,
and we are taxed out the wazoo. And what's going on? But I notice every day when
I talk to people, I'm finding more and more people are realizing how rich we should
be as Canadians. But until that time happens, we have also protect ourselves.
Absolutely. And silver, in my mind, is an incredible rebate. Talk to us about gold
and silver in a registered account, not just how we do it at Guildhall, but the
benefits of having an inflation buster like gold and silver as part of your
registered account. Well, I think it's a must. If you currently don't own any
physical precious metals, you're simply just not diversified. diversification requires
inversely related assets. So if one goes down, the other will buffer the portfolio
and keep that up. Well, the bonds are a sham. You know, we're seeing the dropping
of bonds inclusion of physical gold. And this is real ownership. When you own
physical precious metals within an RSP, and by the way, Guildhall, we were the
pioneers to bring this to the table, bring this into Canada Back in 2015, you know,
we started in 2002, and forever, Canadians wanted to know how can I use my RSP?
How can I protect my RSP? How can I position, especially now for what's happening,
to make my portfolio relevant with silver that is being used in AI,
which is being used in military applications? How can I make my portfolio relevant?
Well, now you can roll out. So we assist with the entire process very happily.
You get in contact with Guildhall. Give us a call, 18778 Silver. And we'll help you
to set up the account. We've partnered with Questrade to do this. And what we do
is we just simply roll over. We just transfer from an existing RSP that you have
elsewhere and you move it over to us. The process takes about 15 minutes. But what
you're doing is you're now moving into a position to now acquire some physical
precious metals, but our philosophy is to hold, if you cannot hold it, you don't
own it. And that is our motto. If you cannot hold it, you don't own it. It will
be stored in an independent vault facility that you can go to the vault. If you
don't believe us that they're there, go audit your product, see what they look like,
verify those serial numbers, and you can hold it. Because if you can hold it, you
own it. In this case, this is what we bring to the table. You can the own
physical, one -ounce bars of gold, Royal Canadian Mint, your famous Falcambi Swiss
bars, Pamp bars, or if it's silver you're looking for, 100 -ounce Royal Canadian
Mint, Pamp bars, Asahi bars. They're all LBMA -approved. That's important, regardless
of... What is LBMA -approved means? It's an accurate for the Lundit... Because on the
one hand, when we watch the markets, and we see the chicanery and the paper market,
it's all happening at the LBMA,
But yet we still want LBMA approved product. Yeah. Well, it's similar to like the U
.S. dollars. What does it stand for first? The London Bullion Market Association, so
the LBMA, they're the foremost, I guess, the overseers of the gold and silver
market. They do two things. The shenanigans with the price, yes, put that aside, but
they help ensure the overall experience of your gold and your silver purchases and
you're buying and selling. Remember why gold and silver. Central banks around the
world need gold and silver for two reasons. Liquidity first and the decouple their
wealth from currencies that are being devalued. The Canadian dollar has lost over 95
% since 1913, a purchasing power. And, you know, the London bullion market,
what they have done, they have created a closed loop chain of integrity to ensure
that the metal has been sourced ethically, that they're pure and that they're minted
in the right way. So you have a list of bars that are public. And if it's
insurance company, you buy the actual policy. And when you're buying physical, that's
what the central banks are doing. We're following what they do. You want to become
sort of your own central bank without being Karl Marx and a communist. And this is
the way we do it. You know, you're owning physical. If you can't hold it, you
don't own it. Buying and selling has done on a phone call with us. And we're
always happy to help. Yeah. And the client gets an itemized inventory report So they
can see exactly what their bar numbers are, what they're holding in their own sub
-account at the vault. So it's fully allocated to them, fully segregated from all
other holdings at the vault. So you have your own sub -account. So unlike other
versions, and there's a place for everything, right? We're not against anything.
There's a place for everything. Absolutely. You know, ETFs can be a great way for
getting in and out of the market, if you're looking to trade, physical market is
not necessarily going to be economical in that means. As well,
perhaps, I don't think it's a question of saving money, but perhaps, you know, if
your budget in your registered account might be only $6 ,000, then an ETF or pool
account becomes a lot more viable, especially when 100 -ounce bar is silver today
costs something like $7 ,500. hundred dollars vouching why but why
put deposited your funds into an RSP and deferred your income great number one
you're not giving the taxes to the government you're staking yourself your own money
i think that's important number two you now the clock is ticking you have to to
know if you've won the game and registered accounts in my opinion you have to beat
inflation and then beat the taxation at the end because you deferred that income
tax. And so now you have to be able to overcome it. So to me, if you say that
inflation is 7 % a year, that means on the decade you need to be making 70 % in
your portfolio. Over a two -decade period, 140%. Now,
you also need to overcome the withholding tax, not withholding tax, but the income
tax that you'll pay at the end. Let's call it 30, 40%. Right. So basically, by the
time you're done after 20, 30 years, you need to make 200%. Okay? Right.
Gold over the last 20 years is up well over 900%. Silver's up well over 700%.
This completely blows away any cost of doing business issues you may have with
acquiring a physical asset. But to me, that's the key. Now, again, it doesn't have
to be everything. It could be a portion, as you said, you're diversifying a
portfolio or having things that are negatively correlated. You want some on red,
some on black, and that's what having a physical asset that's negatively correlated
to the dollar does. But to me, that's the key of the registered account. And the
proof is that over the last decade, we have clients who are up well over 200%.
No managing of a portfolio and
debauched. And this is the first step in the manifesto in order to take control of
people going after bank accounts and things like this have happened. The currency,
the assets that you have within your RSPs are denominated in a currency that are
being destroyed and depreciated in value. We have a rate cut cycle on hand. The
United States will be cutting interest rates on December the 10th, I believe.
Further, the bank of Canada. It's the percentage rate that they're giving? I think
quarter point. But as things progress, we could see slashes happening. The overnight
repo market is also another market that we keep a keen eye on. There's a lot of
risk in the market. So when you see these things happening, by converting out of a
currency, you're now denominating your wealth in ounces that are liquid for you, and
we hold it entirely outside of a digital banking system. When you have policies
against your money, because your money is just digital ones and zeros on your bank
account. When you log in, it looks great. We all love to check it out. But really,
if you go to the bank and ask for that in cash, or what are you to do with your
money? Do you think right now the main concern that people should be looking at
with regard to physical metals is a concern of the stock or,
you know, things being fragile, or are you looking more at the reset of central
banks have been buying gold like crazy? We know that they're buying it because they
understand there's going to be a reset and that gold is continuing to revalue from
here. Right. And so they get to add the asset side of their balance sheet, right?
For me, personally, I think it's Jim Rickards has talked about this, it's not so
much trying to pay down the debt. It's building up the asset side of the balance
sheet and creating productivity and jobs and lowering the cost of energy. Because you
could also lower your energy costs, lower your food costs, still have inflation, but
you've mitigated the pain. And gold and silver have certainly done that as well. But
again, is it we're worried about the fragility of the market or is it that it's
being revalued so much and so quickly. I think fragility is leading up to a
pinnacle where we are leading into the solution. We know gold and silver to be the
solution to boost that side of your asset side. Right now, the U .S. just passed
$38 trillion in debt. The global debt is over $300 trillion. Before World War II,
the U .S. had debt, and 20 % of that debt had to be gold. They had to have
physical gold. There was a ratio there. Well, now, fast forward where there's 38
trillion plus 200 some odd trillion in unfunded liabilities, the gold represents only
2%. So the balance sheet is way off. We're going to need to rebalancing. But it's
way back to Jim Rickards. You know, he's talked about what leads to the fragility
or a recession and crash or depression. It's illiquidity in the markets. There's no
liquidity, which is what I brought up earlier with the repo markets. It's showing
signs of slowing down. Money is not flowing freely anymore.
Banks are hoarding cash. This is usually the cause of major market issues.
And when you have a liquidity crisis, when everyone tries to head to the door at
the same time, Jim Rickards calls that an ice nine event because you're not going
to be able to sell when you want to sell potentially. So firstly, you want to set
up that insurance policy, create that hedge that is away from that madness into
physical precious metals, which is the largest market in the world. Gold bears the
number one market cap globally. It's the largest market in the world. It's not as
volatile as people or planners may say it is. It's actually the currencies that are
being destroyed and losing purchasing power. The currencies are the volatile ones. So
we have a few minutes left. Oh, right? And I want to talk about the supply demand
issues in silver. Again, we talked about the deficit, meaning they're using more
silver than it's coming out of the ground. But this week, there was a crazy
breaking story about nuclear plants, the amount of nuclear that's being planned to be
built.
for every new data center. So imagine the scale out, to build that out, and who's
going to finance? That's a major headline this week. Who's financing this? This is
going to require a lot of capital, a lot of money printing for this, to get
something that is scarce. Six -year structural deficits coming out of the silver
mines. It's a very big problem. You cannot have civilization without silver. Now, the
news this week came from Yokin Stager. He's the CEO and founder of Swiss Resource
Capital. And he's a silver expert.
silver for the investor. That's going to be something of the past. Now, China is
leading that nuclear charge right now with 23 reactors currently under construction
and they have 30 more to come planned by 2030. That's another year that we talk
about here in Canada. 2030, that plan while people are building and getting
resources, we are scaling back. How many ounces does it take to create one of these
nuclear nuclear reactors? Well, I know because I'm looking at it right now. You got
the number? I got the number, yeah. I mean, three to five million ounces of silver.
Three to five million ounces to build one. And how many are they planning on
building right now? So 23 in China currently under construction. Right. Another 30,
right? To be built by 2030. No wonder they're holding back on supporting silver
because there's a boom, they're building out AI, they're building out energy, they're
building out nuclear because they understand that this is the silver stockout that TD
Banks, Daniel Galley talked about. He's the director of commodities at TD Securities.
And he mentioned three times that there's guys, there's a silver rush, the silver
stockout is at hand, There's less and less coming out of the ground and more and
more heading from London overseas. So there is a way for us to prepare for this,
to buy into the silver stockout, and to get yourselves some physical precious metals,
some physical silver. You want to give us a call or visit the website, get in
touch, and it's always an honor to help the Canadians. This is one way of carving
out your freedom, a freedom from the erosion of currencies. This is one way out.
But to position yourself for once to come, this is just the beginning. We're excited
about the numbers. 200 % in a portfolio is great. But this is just the beginning
because Guildhall, we exercise and we use the silver to gold ratio.
We use that every single day to understand where we're at. It gives us, this is a
ratio that tells us how many ounces of silver to get one ounce of gold and the
average is 30 to 1 On it, usually. Well, they're mining it at 8 to 1. 8 to 1.
The historic ratio was 16 to 1. And it goes back to the Roman empires, right? It
goes back to the Roman Empire even before then. So we have a time -tested, trusted
ratio in cycles that are at play to understand where we are. And breakouts do not
happen in physical in gold and silver until that ratio goes below 70. And currently
we're at 80 to one? You know what's crazy about that is 80 to 1 is not a peak
in the market. That's right. That's a beginning of the market. The last, the first
time we ever hit 80 to 1 was in 2008. And the market in silver fell to about $9
after it had climbed up to 21. And we hit, we hit 80 to 1 back in 2008.
And then it climbed all the way from 2008 through 2011. It got up to a 35 to 1.
1980 got to 16 to 1.
about half a million a year, or half a billion a year, 500 million a year. So
that's a huge amount, not talking about batteries and wind power and medical usages
or military usages or these data centers or anything else that silver is used in.
So the fundamentals per silver look really phenomenal at this point,
even with the gains. I know we didn't talk a lot about gold this week. We will
talk a lot about gold in the coming weeks, but if you're looking to get involved
in the physical gold and silver market with Guildhall, you can buy it direct from
us, gold bars. We just launched the half -ounce gold bar, which is great. I don't
know how much we have. The inventories are always tight, but you can always buy
bars, coins, gold, silver, and we do help clients to store And then as well within
registered accounts, why have paper, why have counterparty risk? You can own it
yourself. And one of the great things is even when clients convert their RSPs to
RIFs, they can even take delivery of it as part of their withdrawal every year,
which is an exciting thing to see. So that does it for a week of The Real Money
Show, Jerry. Thank you for joining us. Thank you for joining us. And we can't wait
to speak to you next time here on The Real Money Show.